How can people with low incomes manage their finances?

30% is used for bank fixed deposits, 40% can be used for investment (e.g. regular investment**), and 30% is used to improve the quality of life.

Generally speaking, high-income families have certain financial management skills and tend to diversify their investments, but there are still some gaps between them and professional investors. What's the way to do it that is both straightforward and family-friendly? Let's share with you a classic method "4321 law" and its common use scenarios.

The law of 4321 is a method of family income distribution. According to this approach, a more reasonable proportion of expenditure for high-income families is: 40% of their income is used for investment; 30% for household living expenses; 20% for bank deposits in case of emergency; The last 10% is used for insurance, making family wealth more stable and secure.

If the monthly family income is 30,000 yuan, then 12,000 yuan can be used for investment, 9,000 yuan for daily expenses, 6,000 yuan in the bank, and 3,000 yuan for insurance expenses.

Arranging family income in this way can not only meet the needs of ordinary families for value preservation, appreciation and insurance. The law of 4321 can be used as a reference idea, specific to each family, according to its own actual situation, to make some adjustments to the proportion of the four parts of expenditure.

1. Gold-collar families.

For example, a family with an annual income of 2 million yuan is not very cost-effective if it puts 20% of its bank deposit every year, that is, 400,000 yuan. The proportion of "live money" stored in the bank can be reduced to 5%-10%, and 10-200,000 yuan of reserve funds for emergency purposes is enough. With the rest of the money, you can choose investments with higher returns, at least to beat inflation.

Similarly, if the family's existing assets can fully cover the hidden worries caused by death, illness and pension, that is to say, the family itself has enough strength to resist risks, then there is no need to spend too much money to buy insurance, and the insurance ratio should be reduced.

2. Newlywed families.

If the family has just been formed, and both husband and wife are young white-collar workers, who do not have children yet, and do not have a mortgage burden, then the proportion of the investment part can be increased. You can not only experience a variety of investment varieties, but also spend money on yourself while you are young and have time, recharge, travel, and expand your network.

3. The old couple family.

Corresponding to the retired empty-nest family, because the children have left home to work, the family's expenditure burden has decreased, and the wealth accumulation has reached its peak, at this time, you can reduce the proportion of investment, stop thinking about the pursuit of high returns, and maintain value.

Because you have gone from the stage of pursuing wealth to the stage of enjoying wealth. Most of the family's expenses should be spent on daily life, travel, medical care, etc., and 40% of the proportion is invested in it, which may go against your desire for stability.

At the same time, the proportion of insurance used for insurance should also be reduced, most insurance is not friendly to the elderly, the premium rate is high, and it is not cost-effective.

1. If you want to manage your finances with a low income, you must first set aside enough funds for emergencies. And you also have to do a good distribution and planning according to the amount of your income and how much you spend. For example, if your monthly income is only 3,000 yuan, you can set aside 2,500 yuan for consumption and savings, and the remaining 500 yuan can be used for financial management.

2. And you also need to pay attention to the fact that low-income people are not suitable to invest in those high-risk financial products, so it is recommended to choose low-risk financial products with stable returns. Like treasury bonds, currency**, etc., they are financial products that are very suitable for low-income people. There are many currency products in Yue Bao, as well as wealth management pass, which many people who are new to financial management will choose.

3. When your financial income reaches a certain benefit and your wealth has accumulated some, you can start to make some risky investments, but you still have to do a reasonable allocation of high and low risks according to your own risk tolerance.

In fact, low-income can also manage money, but you need to reasonably allocate your income, after all, investment and financial management are risky, so you need to invest carefully.

1. Actively save money, "less income, but a lot of consumption" This is the problem faced by most low-income families. In order to obtain the "first pot of gold" of the household, it is necessary to first reduce fixed expenditures, that is, to accumulate surplus by reducing the immediate consumption of the household, and then use these surplus assets to invest in the consumption of the family. Low-income households can make a detailed list of their monthly household expenses and analyze them carefully.

Reduce waste without affecting your life, and try to reduce your spending on shopping, entertainment and other items to ensure that you can save some money every month.

2. It is recommended that low-income families choose pure protection or partial protection products, mainly "health and medical care" insurance, supplemented by accident insurance. Especially for those families who do not have high social health protection, the ideal insurance plan is to purchase critical illness health insurance, accidental injury medical insurance, and hospitalization medical insurance**. If you really don't plan to spend money on insurance, it is recommended to buy accident insurance anyway, in case of misfortune, the payout can also alleviate some difficulties for the family.

3. Invest prudently, for low-income families, the salary is often low and cannot withstand the big loss, therefore, before investing, we must be psychologically prepared, first of all, we must understand the evaluation of investment and return, that is, the return on investment. It is necessary to have a basic understanding of the operation of different investment methods, all investment methods will have risks, just big and small, but for low-income families, security should be the most important.

For example, today's ** is very attractive, but its risk is self-evident, and this type of investment method is not suitable for low-income families. In contrast, some fixed-income wealth management products are very suitable for low-income families, and the monthly return income can be distributed to subsidize the family, and the investment period is not long, which can ensure the liquidity of funds so that the family needs it from time to time.